IMF reaches staff-level agreement with Pakistan on $1.2 billion loan

ISLAMABAD, Pakistan (MNTV) — The International Monetary Fund (IMF) announced Wednesday that it has reached a staff-level agreement with Pakistan under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF), unlocking a potential $1.2 billion disbursement pending approval by the IMF Executive Board.

If approved, Pakistan will receive $1 billion under the EFF and $200 million under the RSF, bringing total disbursements under the two programs to around $3.3 billion.

The announcement followed a two-week IMF mission to Karachi and Islamabad from Sept. 24 to Oct. 8.

In a statement, the IMF noted that Pakistan’s economic recovery remains on track, highlighting the country’s first current account surplus in 14 years, improved fiscal performance, and inflation within target.

However, it cautioned that devastating floods affecting nearly 7 million people have hampered growth, particularly in the agriculture sector.

“The recent floods, which caused over 1,000 deaths and severe damage to housing, infrastructure, and farmland, have weighed on the outlook,” the Fund said.

Pakistani authorities, according to the IMF, reaffirmed their commitment to the programs and pledged to maintain “sound and prudent macroeconomic policies” while advancing structural reforms.

The new deal follows last year’s $3-billion bailout agreement, which helped stabilize Pakistan’s foreign reserves and currency amid a deep financial crisis.